1. The shareholders of a corporation do NOT have the right to... a) an equal portion of the company's profits if the company decides to pay them out. b) a vote to elect the Board of Directors. c) an equal portion of the remaining assets if the company goes bankrupt. d) goods or services from the company at a discount. 2. The primary accounting difference between sole proprietorships, partnerships and corporations is... a) the types of inventory they record. b) their Equity accounts. c) how often they have to pay the government any HST collected. d) the way they record the purchase of assets. 3. The account that represents all of the money collected from the sale of a corporation's shares is called... a) Retained Earnings. b) Share Capital. c) Dividends Payable. d) none of the above. T 4. An example of a Profitability ratio is... a) Return on Net Sales. b) Current Ratio. c) Debt Ratio. d) Equity Ratio. 5. To see how much cash flowed into or out of a business as a result of buying or selling assets like buildings and equipment, you would look at the Cash Flow Statement's section. a) Financing Activities b) Operating Activities c) Investing Activities d) Asset Sales Activities 6. The Adil Corporation is a medium-sized investment firm. The owner originally incorporated her business to take advantage of the limited liability of the corporate structure. Shares of the company are not traded on the stock market. Identify the type of corporation this company is. a) Private b) Merchandiser c) Public d) None of the above 7. Given the following information from the Ahmed-Cao Corporation's Balance Sheet, how much money in total did they originally raise from the sale of their shares? Shareholder Equity Share Capital $1,500,000 Retained Earnings 656,000 Total Equity $2,156,000 a) $656,000 b) $1,500,000 c) $2,156,000 d) Cannot be determined 8. During the closing entries, The H-H Bagel Company recorded the following: Dec 31 Retained Earnings 180,000 Income Summary 180,000 This entry suggests that... a) H-H has a net loss for the year. b) H-H sold additional stock this year. c) H-H is a private corporation. d) H-H declared a cash dividend this year. 9. When Khan Printing borrows $50,000 from the bank, it would be reflected in the section of the Cash Flow statement as a a) Operating Activities; cash outflow b) Financing Activities; cash outflow c) Operating Activities; cash inflow d) Financing Activities; cash inflow 10. ROE Medical Supplies has the following shareholder equity data: Shareholder Equity Share Capital Retained Earnings Total Equity $900,000 345,000 $1,245,000 Given the above information, which of the following statements is FALSE? a) ROE earned $345,000 last year. b) ROE originally sold their shares for $900,000. c) The total owners' claim on the company's assets is $1,245,000. d) ROE is a corporation. 11. Zaara wants to know if her accounting firm is spending a similar percentage of money on expenses like wages as her competition. Identify for her the type of financial analysis she should use. a) Horizontal b) Ratio c) Vertical d) Cash Flow